Celadon Overstated JV Share, Hid SEC Probe, Suit Says

Law360, New York (April 19, 2017, 6:09 PM EDT) -- A proposed class of Celadon Group Inc. investors on Wednesday alleged in New York federal court that the commercial trucking business exaggerated a joint venture contribution and hid a U.S. Securities and Exchange Commission investigation, causing stock drops when both issues came to light.

Investor Denis Chavez said that media reports on Wednesday revealed that Celadon is under investigation by the SEC, two weeks after allegations surfaced claiming that Celadon had overstated its contribution to a joint venture with Element Financial Corp. by almost $32 million. Both revelations caused stock drops, harming investors who may not have otherwise bought Celadon stock...

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